Guidance

Tips for businesses using dynamic pricing

Published 20 June 2025

Be transparent about pricing

Don’t assume your customers are aware of how you approach pricing or understand what that means for them.

How and when dynamic pricing is used can vary a lot between sectors – and this can be confusing for people. Transparency about your pricing approach is therefore a good way to help build consumer trust – especially if it might be unexpected.

Be clear that prices can change

Don’t create the impression that a specific price is fixed or guaranteed, if prices are actually changing – consider whether you need to tell people upfront that prices can change and are not static. And ensure that any marketing of prices doesn’t become immediately out of date.

Consider what customers need to know

Consider what information your customers need about your pricing practices at key points in the transaction journey so they can make choices that are in their best interests, for example, to plan their purchases to get the best deal. This might include an explanation of what makes prices change, for example - if prices go up the closer to a booking date the purchase is made, or the range of prices, for example minimum and maximum amounts. Ensure information is also presented at the point in the journey where it is most relevant, for example when consumers are taking decisions about which products to view or buy.

Present information clearly

Ensure necessary information is presented prominently and clearly.

Think about how it is displayed, such as the font size used and the positioning and colour of text. Importation information is unlikely to be clearly and prominently provided if it is in the ‘small print’ of terms and conditions, or only accessible through a hyperlink that could be missed or not opened.

Explain important terms

Consider information from the perspective of the customer. What they might assume when a price is describes as ‘reserved’? Explanations should be given in clear language that customers understand and may need examples to bring to life.

Consider vulnerable consumers

Consider how vulnerable consumers might be affected by your approach to pricing, and what extra help and information can enable them to get the best possible deal. Consider what you sell and who you sell it to, as different practices, and even the same practices in different circumstances, may have different effects depending on the type of consumer they reach or affect.

Don’t make consumers make snap decisions

Take steps to ensure consumers are not put under undue or unfair pressure to make snap decisions if prices are changing

Particularly if those changes happen quickly and often. This may be particularly important if, for example, prices might be changing whilst they are in an online queue.

Don’t change prices while customers are paying

Make sure that people are told what they will actually pay at the right points in the purchase process, for example, in an ‘invitation to purchase’ or when they click ‘buy’, and don’t change the price while they are in the process of paying.

For more information on dynamic pricing, read the full project update.